There are four possible methods of transfer pricing between national divisions of a country, one of which is arm's length sales.

Question

Quizplus · Accepted Answer

Transfer pricing methods are used between divisions or subsidiaries of the same company across different countries, not within a single country's national divisions. The arm's length principle is used to ensure that the transactions between these divisions or subsidiaries are conducted as if they were between unrelated parties.

There Are Four Possible Methods of Transfer Pricing Between National